Unlocking REIT Returns: Real Estate Investment Factors
As of 2024, real estate investment trusts (REITs) have cemented their role as a $1.5 trillion segment within global capital markets, offering investors a liquid and regulated gateway to commercial real estate. With robust dividend mandates, leverage restrictions, and transparent operations, REITs continue to attract both institutional and individual investors seeking diversification and steady income streams.
Groundbreaking Research
Mariya Letdin, Cayman Seagraves, and Stace Sirmans, authors of the May 2025 study “REIT Factors”, investigated the drivers of returns in REITs by developing and analyzing six specific return factors:
Size (market capitalization)
Value (relative cheapness)
Momentum (recent performance persistence)
Quality (profitability, earnings stability, strong fundamentals)
Low Volatility (defensive)
Short-Term Reversal (contrarian effects, mean reversion)
You can read the rest of my Alpha Architect article here.